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The Insider's Guide to Culture Change: Creating a Workplace That Delivers, Grows, and Adapts

The Insider's Guide to Culture Change: Creating a Workplace That Delivers, Grows, and Adapts

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The Insider's Guide to Culture Change: Creating a Workplace That Delivers, Grows, and Adapts

Length:
320 pages
6 hours
Publisher:
Released:
Feb 11, 2020
ISBN:
9781400214662
Format:
Book

Description

The secret to the success or failure of any business boils down to its culture.

From disengaged employees to underserved customers, business failures invariably stem from a culture problem. In The Insider’s Guide to Culture Change, acclaimed culture transformation expert and global executive Siobhan McHale shares her proven four-step process to demystifying culture transformation and starting down the path to positive change.

Many leaders and managers struggle to get a handle on exactly what culture is and how pervasive its impact is throughout an organization. Some try to change the culture by publishing a statement of core values but soon find that, aside from some short-term lip service, no meaningful change happens. Others try to unify the culture around a set of shared goals that satisfy shareholders but find their efforts backfire as stressed employees throw their hands up because “leadership just doesn’t get it.” Others implement expensive new IT systems to try to bring about change, only to find that employees find “workarounds” and soon go back to their old ways.

Culture transformation expert Siobhan McHale defines culture simply: “It’s how things work around here.”

The Insider’s Guide to Culture Change walks readers through McHale’s four-step process to culture transformation, including how to

  • Understand what “corporate culture” really is and how it impacts every aspect of the way your organization operates
  • Analyze where your culture is broken or not adding maximum value
  • Unlock the power of reframing roles within your company, to empower and engage your employees
  • Utilize proven methods and tools to break through deeply embedded patterns and change your company mind-set
  • Keep the momentum going by consolidating gains and maintaining your foot on the change accelerator

With The Insider’s Guide to Culture Change, watch your employees go from followers to change leaders who drive an agile culture that constantly outperforms.

Publisher:
Released:
Feb 11, 2020
ISBN:
9781400214662
Format:
Book

About the author

Siobhan McHale has worked across four continents, helping thousands of leaders to create more agile and productive workplaces. She also has been on the “inside” as the executive in charge of culture change in a series of large, multinational organizations. One of these inside jobs was a radical seven-year change initiative at Australia and New Zealand Banking Group Limited (ANZ) that transformed it from the lowest-performing bank in the country into one of the highest-performing and most admired banks in the world. Professor John Kotter used her work with ANZ as a Harvard Business School case study designed to teach MBA students about managing change.


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The Insider's Guide to Culture Change - Siobhan McHale

Praise for The Insider’s Guide to Culture Change

If you are a leader who wants to build an enduring company where people go to work, are happy, and deliver exceptional results, read this book. It is filled with Siobhan McHale’s ‘insider’ case studies and her groundbreaking four-step approach to culture change.

—Garry Ridge, Chief Executive Officer, WD-40 Company

This book contains the most groundbreaking thinking on how to change workplace culture that I have seen in many years. Siobhan’s methods will be transformational to unlocking culture change efforts across the world. This is a highly practical methodology from someone who has actually been through the process from the inside.

—Carolyn Taylor, Global Culture Change Pioneer and Author of bestselling Walking the Talk: Building a Culture for Success

Culture is often regarded as a mystery. Yet this Pandora’s box of myths and fallacies is critical to business performance. Through the expert eyes of Siobhan McHale, we clearly see how culture uniquely contributes to performance on every level. Whether you are a startup or an established international enterprise, you cannot afford to ignore this better, faster, easier way to enduring success.

—Richard Hames, Writer, Futurist, and Executive Director of the Centre for the Future

Much wise advice and vital information from a master of organizational culture change.

—Richard Barrett, Founder of the Barrett Values Centre and the Academy for the Advancement of Human Values

"Siobhan brings a fresh voice based on deep experience; a luminary in the corporate culture conversation. The Insider’s Guide to Culture Change is the perfect guide for anyone who wants to create a high performing and agile culture."

—David Hennessy, Host of The Hennessy Report podcast from Keystone Partners

Culture is the operating system our companies run on. Those who ignore its tremendous power to drive business results do so at their peril. Siobhan McHale’s book is an indispensable guide to making culture work for you rather than against you, and her four-step model to culture change is a vital tool for anyone seeking to make change happen at work.

—Aga Bajer, Culture Strategist, Author, and CultureLab Podcast Creator

If you’re intrigued to find the big patterns that drive your culture and up for the hard work needed to shape them, this book is for you. Siobhan McHale will help you find the blend of know-how, true grit, and resilience you’ll need for the task.

—Diane Smith-Gander, Nonexecutive Director, Advocate for Gender Equity

In today’s ever-changing business environment, bad companies fold, good companies survive, and only great companies thrive and succeed. One of the secrets of greatness is undoubtedly the right culture. In this important book, Siobhan McHale provides readers with a no-nonsense formula for defining, creating, and maintaining the right culture, where people embrace change and agility that enables the organization to win. After all, organizations are neither agile nor innovative—only people are.

—Mihály Nagy, Founder of The HR Congress

As CEO and chairman of major companies, I learned that how a company works is as important as what it does. Ensuring success is a function, not only in financial or market outcomes, but also through the creation of a high-energy performing organization with a vibrant culture, achieved through effective leadership and process. Siobhan’s book offers pragmatic insight as to how to go about this.

—John McFarlane, CEO and Chairman of major companies

© 2020 Siobhan McHale

All rights reserved. No portion of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopy, recording, scanning, or other—except for brief quotations in critical reviews or articles, without the prior written permission of the publisher.

Published by HarperCollins Leadership, an imprint of HarperCollins Focus LLC.

Book design by Aubrey Khan, Neuwirth & Associates.

ISBN 978-1-4002-1466-2 (eBook)

ISBN 978-1-4002-1465-5 (HC)

Epub Edition December 2019 9781400214662

Library of Congress Control Number: 2019945645

Printed in the United States of America

20212223LSC10987654321

To the leaders who embrace the challenges

of culture change to create better workplaces.

CONTENTS

Cover

Title Page

Copyright

Acknowledgments

Preface: Two Life-Changing Moments

• CHAPTER 1 •

LEARN THE INSIDER’S SECRET

THE CULTURE DISRUPTOR

Understanding the Power of Culture

Seizing the Ultimate Competitive Advantage

Activating the Culture Disruptor

Diagnosing What’s Really Going On

Reframing Roles

Breaking Out of Deeply Embedded Patterns

Consolidating Gains with the Culture Disruptor

• CHAPTER 2 •

UNDERSTAND WORKPLACE CULTURE

DEBUNKING THE MYTHS ABOUT CULTURE

Busting the Big Myth about Workplace Culture

Focusing on the Three Key Elements of Culture

Redrawing Mental Maps

Taking Up the Right Roles

Disrupting the Patterns

Understanding Patterns at a Deeper Level

Learning to See Patterns

Recognizing the Influence of Societal Patterns

• CHAPTER 3 •

PREPARE FOR CHANGE

DIAGNOSING YOUR CURRENT BUSINESS ENVIRONMENT

Scanning the Marketplace

Seeing the Threats on the Horizon

Going Beyond Good

Accurately Assessing Your Business Needs

Deciding How You Will Measure Progress

• CHAPTER 4 •

DIAGNOSE THE CURRENT CULTURE

LOOKING FOR THE BIG PATTERNS

Learning by Walking Around

Pressing the Pause Button

Gathering Multiple Perspectives

Adding Up the Numbers

Understanding How People Interpret Their Experiences

Seeing the Big Patterns

• CHAPTER 5 •

REFRAME THE ROLES

TURNING EVERYONE IN THE ORGANIZATION INTO A CHANGE LEADER

Knowing What You Can and Cannot Change

Taking Up Your Role as Change Leader

Turning the Leadership Group into Change Leaders

Mobilizing Business Units to Change

Aligning Employees with the Mission

• CHAPTER 6 •

TAKE CHARGE OF THE JOURNEY

BECOMING AN INSPIRING CHANGE LEADER

Learning from Pattern-Breaking Leaders

Tackling Deeply Embedded Patterns

Making a Compelling Case for Change

Planning for Change

Testing the Waters

• CHAPTER 7 •

ENGAGE THE ENTIRE ORGANIZATION

MOBILIZING THE PEOPLE WHO DO THE WORK

Making the Work Meaningful

Choosing the Right People

Turning Everyone into a Problem Solver

Keeping the Team’s Eyes on the Prize

Mastering the Art of Constructive Feedback

• CHAPTER 8 •

ALIGN PROCESSES, POLICIES, AND PROCEDURES

DESIGNING NEW WORK SYSTEMS AND SPACES

Embracing the Digital Future

Fine-Tuning Performance and Reward Systems

Aligning the Three Ps

Remodeling the Business

Tailoring Workspaces to Suit the Culture

• CHAPTER 9 •

GATHER CHANGE MOMENTUM

ENABLING THE CHANGE TO SPREAD RAPIDLY

Dealing with the Blockers

Understanding the Reasons for Your Culture’s Assumptions

Getting Past Middle Management

Changing the Story

Employing Powerful Symbols to Reinforce the Change

• CHAPTER 10 •

CONSOLIDATE GAINS

EMBEDDING THE EMERGING CULTURE

Maintaining an Unswerving Dedication to the Change Effort

Measuring Your Progress

Building Your Change Capability

Watching Out for the Old Patterns

Maintaining Your Energy Levels along the Way

Remaining Resilient through the Change Journey

Conclusion: Turning Change into Future Success

Index

About the Author

ACKNOWLEDGMENTS

Over my thirty-year career, many people assisted or mentored me as I gained the experience and expertise to write this book. A very special thanks to Michael Snell, a wonderful agent. He was willing to take a risk on a writer from Down Under, and he effortlessly bridged the sixteen-hour time difference between Truro, Massachusetts, and Melbourne, Australia. Michael walked with me every step of the way, provided invaluable input to the book, and he contributed greatly to the quality of the final manuscript. I appreciate his faith in me, and I feel very fortunate to have had the benefit of his talent, experience, and dedication in helping create this book.

A heartfelt thanks to everyone at HarperCollins Leadership for the opportunity to publish this book and their ongoing support. In particular, I’d like to thank Jeff James (Vice President and Publisher), Tim Burgard (Senior Acquisitions Editor), Hiram Centeno (Senior Marketing Manager), and Sicily Axton (Senior Publicity Manager). Thanks also go to Jeff Farr (Managing Editor) and Beth Metrick (Production Director) at Neuwirth & Associates, who expertly handled the editorial production of the book.

I have woven stories of inspirational culture leaders throughout this book. One of these leaders was John McFarlane, who was a privilege to work with over seven years at ANZ bank. He encouraged his employees to tap their true, authentic selves and create a bank with a human face. Standing alongside John McFarlane were his team of capable and courageous executives who co-led the transformation to a more human bank—including (in no particular order) Sonia Stojanovic, Brian Hartzer, Peter Marriott, Graham Hodges, Alison Watkins, Louis Hawke, Elizabeth Proust, Bob Edgar, Elmer Funke Kupper, Peter Hodgson, Grahame Miller, Rick Sawers, Peter Hawkins, Greg Camm, Shane Freemen, David Boyles, Craig Coleman, Satyendra Chelvendra, Roger Davis, Chris Cooper, Gordon Branston, Carole Anderson, David Hornery, Ian Richard, John Winders, Bob Lyon, Peter McMahon, Bruce Bonyhady, Murray Horn, Mark Lawrence, Mike Grime, Steve Targett, Sir John Anderson, Rob Gousdswaard, Mike Guerin, and Brad Jordan.

I also thank my (Breakout) team at ANZ and the group of external facilitators who worked tirelessly to transform the culture at the bank. Special mention goes to my leadership group—Joanne Martin, Phillip Ralph, Chris Power, Mark Priede, and Rocco Cirillo—for their dedication. My gratitude also goes to Gita Bellin, a pioneer in the field of human transformation, who guided me on my higher journey toward becoming a culture change educator.

I wish to acknowledge the many leaders I have worked with over the years who have provided me with opportunities to deepen my culture expertise, including Robyn Brown, Reg Smith, Peter Goode, Graeme Hunt, Elizabeth Hunter, Stephen Phillips, and Diane Smith-Gander.

More recently, my leadership colleagues at DuluxGroup have demonstrated the real meaning of leader-led change and what it feels like to be part of a truly great culture. They include board members—Peter Kirby (ex-chairman), Graeme Liebelt (chairman), Andrew Larke, Joanne Crewes, Jane Harvey, and Judith Swales—and my executive team colleagues, Patrick Houlihan (MD and CEO), Stuart Boxer, Pat Jones, Martin Ward, Jennifer Tucker, Murray Allen, Richard Stuckes, Brad Hordern, Ian Rowden, and Simon Black. A special mention goes to my HR team at DuluxGroup for working alongside me as we continued to reinforce an engaged and high performing culture, including my leadership group of Luke Brabender, Sue Benefield, Lindy Visagie, Cassie Brain, Shaun Humphrey, Rebecca Cusack, Stephanie Watt, and Claudia Pernat.

A community of like-minded professionals provided regular feedback on my articles and videos on LinkedIn—they include Vitaly Geyman, Susan Franzen, Hilton Barbour, Denis Kelly, Jon Williams, Edwin Cohen, Karin Volo, Brendan Geary, Luis Moura, Aga Bajer, Kristina Hiukka, Dr. Mervyn Wilkinson, Mark LeBusque, Christine Song, and Gene Bellinger. A special thanks goes to Peter Goral for his advice on branding and for being one of my most active supporters on LinkedIn. Thanks to Mihaly Nagy (founder of the HR Congress) and David Hennessy at Keystone Partners (and founder of the HR podcast The Hennessy Report) for being strong advocates and supporters of my work on organizational culture. Thanks also goes to Matthew Pollard for his feedback on the writing experience.

Close friendships have sustained me over the course of writing the book. I must thank Janice Gobey for listening to my ramblings about workplace culture over many cups of Earl Grey tea. I am grateful to Sonia Stojanovic, my former boss at ANZ bank, whose visionary leadership taught me that personal and organizational transformation go hand in hand. Angelica Fabian-Varga has been a friend over many years and always a great source of encouragement and energy. I met my longtime friend, Joan Lurie, when she joined my Breakout team at ANZ. She introduced me to the thinking of great systems practitioners Irving and Bella Borwick, whose approaches have influenced my work. In her own right, Joan is an authority in the field of systemic change. A special shout out goes to my friend and talented facilitator Greg O’Meara, who has also partnered with me over many years to transform workplace cultures.

My thanks also go to my partner, Trish, a fellow author, who planted the idea for this book many years ago over a glass of chardonnay at The Farmers Arms Hotel in Daylesford, Australia. Thanks for all your guidance and advice on the book direction and content—as well as for your love, support, and inspiration over the years. I could not have written this book without you.

Finally, my love and respect go to my parents, Patricia and Martin McHale, who encouraged my thirst for learning and gave me the gift of unconditional love. You are both gone too soon; I will miss you always.

A SPECIAL INDUSTRY ACKNOWLEDGEMENT

I would like to acknowledge several thought leaders who have contributed greatly to the field of culture and who have influenced me in my work:

John Kotter, the change management guru and Konosuke Matsushita Professor of Leadership, Emeritus, at Harvard Business School, has been an inspiration to countless change practitioners all over the world. I want to thank John not only for his lifetime contribution to the understanding of change but also for influencing my life when he called me one day in 2005 to ask if he could feature my work as a case study at the Harvard Business School.

Edgar Schein has published extensively on the topic of culture and made a notable mark with his theories of organizational culture and leadership.

Carolyn Taylor, whose work I’ve admired for decades, provided another beacon in the change management field when she first came to my attention in 2005 with her groundbreaking book Walking the Talk. Carolyn has served as an inspiration and invaluable sounding board on my journey as an author.

Stan Slap, the author of several New York Times bestsellers on workplace culture, has been one of my inspirations in writing this book.

Thank you all for your ongoing contribution to the field of workplace culture and change.

Culture is always a work in progress, and no culture ever achieves perfection. During my research, I encountered many leaders who had embarked on culture change. Analyzing what they have done can help us on our own change journeys. They include (in alphabetical order):

•Ellyn Shook and Pierre Nanterme (Accenture)

•Brian Chesky, Nathan Blecharczyk, Joe Gebbia (Airbnb)

•Jeff Bezos (Amazon)

•Tim Cook (Apple)

•Michelle Moore and Brian Moynihan (Bank of America)

•Frank Wang (DJI)

•Patrick Houlihan (DuluxGroup)

•Jim Weddle (Edward Jones)

•Mary Barra (General Motors)

•Sundar Pichai (Google)

•Dharmesh Shah and Brian Halligan (HubSpot)

•Brad Smith (Intuit)

•Jean-Paul Agon (L’Oréal)

•Jørn Lyseggen (Meltwater)

•Kathleen Hogan and Satya Nadella (Microsoft)

•Reed Hastings (Netflix)

•The residents of Oulu in Finland

•Rose Marcario (Patagonia)

•Herve Humler (Ritz-Carlton)

•Gary C. Kelly (Southwest Airlines)

•Elon Musk (SpaceX)

•Daniel Ek and Martin Lorentzon (Spotify)

•Kevin Johnson (Starbucks)

•Team Sky

•Susan Chambers, Wanda Young, and Doug McMillon (Walmart)

•Jeffrey Raider, Andrew Hunt, Neil Blumenthal, and Dave Gilboa (Warby Parker)

•Garry Ridge (WD-40)

•Tony Hsieh (Zappos)

I hope the lessons from these leaders, contained in case studies in the book, can help you to learn more about culture, and continue to create workplaces that can deliver, grow, adapt, and prosper.

PREFACE

TWO LIFE-CHANGING MOMENTS

My name is Siobhan, pronounced Shiv-awn (Gaelic for Joan). I grew up in Ireland, in a big farmhouse surrounded by apple trees, with the River Inny running through the back field beyond the swaying cypress trees. My siblings and I played, fished, swam, and laughed our way through our childhood days. We spent so much time learning to play the piano, concert flute, drums, accordion, and tin whistle, singing and dancing the night away, that we jokingly called ourselves the Irish von Trapps. I can still hear the sound of music.

Like so many kids of our generation, we did not appreciate the fact that our parents had not enjoyed such a carefree life. Nor did we appreciate all the sacrifices they had made to ensure so much joy and laughter for their kids. They also wanted to see us go out into the world and make a difference in the lives of others: Keep learning, find your passion, see the world!

I did see the world, leaving Ireland to study in England, and then jetting across the United States, Europe, and Asia for two big consulting firms before finally settling in Australia. Eventually, my parents moved Down Under to join their five children. They bought a house in Sydney’s Sutherland Shire and soaked up the adventure, sunshine, and vibrant culture of their new homeland.

The first life-changing moment: Seven years after arriving in Australia, my mom was diagnosed with Lou Gehrig’s disease. Before the disease stripped her of the ability to move, speak, or swallow, she and I went for a walk along Cronulla Beach. It was a cold, blustery winter’s day, with dark grey clouds grazing the windswept headland. As we strolled along the sand, Mom kicked off her shoes and walked barefoot in the ebbing tide. I shivered as I joined her, linking arms and leaning my head against hers. We wended our way like a pair of coconspirators, sharing stories of those long-gone-by times on the farm in Ireland. When she asked me about my life now, I told her about my passion for helping people get the most out of their work lives. Her eyes lit up. "I just knew my children would make a difference in the world!" Eighteen months later, she passed away.

I share this story because I want my readers to know a little bit about who I am and why I wrote this book. At the risk of sounding corny, I really did want to fulfill my parents’ wishes and do something meaningful and fulfilling with my life. I wanted to toss my own little pebble of difference into the big pond and watch the ripples carry people into workplaces where they could express their passion, find fulfillment, and make their own difference in the world. I began my journey by studying psychology, earning my bachelor’s at the National University of Ireland in Galway on the west coast of Ireland. While my fellow young psychologists went on to pursue careers in mental health, I chose a different path. I had developed a keen interest in that one-third of a person’s life spent working for a living. My colleagues devoted themselves to the other two-thirds, and I dove into the world of work, enrolling in a master’s degree program in occupational psychology at the University of Sheffield in northern England. That degree helped me secure positions as a consultant at two of the largest consulting firms in the world.

I spent the next decade travelling across the United States, Europe, Australia, and Asia, helping leaders change and improve their workplace cultures. Along the way, I observed the subtleties and complexities of a subject so many leaders find baffling and hard to grasp. I watched toxic team environments drain the energy from employees and leave customers feeling angry and frustrated. And I witnessed high-performing,

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